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DRAFT REPORT (2024/2054(INI))

On European Central Bank – annual report 2024

ECON-PR-765056

Committee on Economic and Monetary Affairs · Rapporteur: Anouk Van Brug

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✦ In short · AI summary of this text, generated 4 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

This draft report on the European Central Bank's 2024 annual report welcomes lower inflation but criticises the ECB for acting late and calls for balance sheet reduction and respect for the prohibition of monetary financing. It supports the digital euro as a complement to cash, stresses privacy and compensation for banks, and urges the ECB to stick to its price stability mandate and avoid political decisions. It also calls for strengthening the euro's international role, ensuring cyber security, and welcoming the Basel III framework.

Committee position. The rapporteur proposes a resolution that welcomes the ECB's role but criticises its delayed response to inflation and calls for balance sheet reduction, respect for the prohibition of monetary financing, and a focus on price stability.

Key points

  1. Welcomes the ECB's role in safeguarding monetary stability and stresses that its statutory independence is a prerequisite for fulfilling its mandate.
  2. Regrets that inflation remains above the 2% target in some member states and warns against lowering interest rates too quickly.
  3. Calls on the ECB to gradually reduce its balance sheet, as its purchase programmes amount to monetary financing if not shrunk.
  4. Regrets the establishment of the transmission protection instrument and calls on the ECB to respect the economic meaning of the prohibition of monetary financing.
  5. Welcomes progress on the digital euro, reiterates that it should complement cash, and stresses the need for a compensation model for banks.
  6. Calls on the ECB to take due account of privacy concerns and make the digital euro a gold standard in privacy.
  7. Calls on the ECB to refrain from politically motivated decisions and stick to its price stability mandate.
  8. Insists that the ECB respect the market neutrality principle and regrets that its decarbonisation actions have not been market neutral.
  9. Calls on the ECB to use all tools to ensure banks take climate risk seriously.
  10. Calls on the ECB to look into strengthening the international role of the euro and support market-driven shifts.
  11. Welcomes attention to cyberattack risks and calls on the ECB to ensure the safety and security of the monetary system.
  12. Welcomes the finalisation of the Basel III framework and supports the aim to increase female representation in economics.

Who is affected

  • The European Central Bank: is called on to reduce its balance sheet, respect the prohibition of monetary financing, and stick to its mandate.
  • The banking sector: would be tasked with implementing the digital euro and needs a compensation model.
  • Member states: are called on to conduct responsible fiscal policies and ensure sustainable debt levels.

Figures and deadlines

  • Inflation fell from 10.6% in October 2022 to 1.7% in September 2024.
  • Core inflation fell from 7.6% in March 2023 to 2.7% in September 2024.

Legal basis: Articles 123(1), 125, 127(1) and (2), 130, 282(2) and 284(3) TFEU; Articles 3, 13 and 119 TEU; Articles 2, 15 and 21 of the Statute of the ESCB and of the ECB.